Number of hotels on sale reaches record in Vietnam

Hotels for sale is reaching a record number in a decade in Vietnam.

The number of hotels for sale is reaching a record high in a decade in Vietnam as the Covid-19 pandemic has thrown the local tourism industry in abyss, according to real estate brokers. 

Every day, dozens of hotels in Ho Chi Minh City, Hanoi, and coastal cities are for sale, but the number of properties hitting the market far outstrips that of buyers.

 A hotel in Hai Ba Trung district, Hanoi. Photo: Saigondautu

In Hanoi, the Old Quarter is home to many hotels for sale due to the impacts of the second wave of Covid-19 infections. Located on Hue Street, a 200m2 hotel is offered at VND300 million (US$12,930) per m2. Also, a 5-story hotel on Hang Be street with 16 rooms and 5.5m main side is asking for VND69 billion (US$3 million).

Hang, who owns many hotels in Hanoi's Old Quarter, said that because of indebtedness, she had to sell her Emerald hotel.

Another hotel is posted on the online exchange Alonhadat stating "for sale for Covid-19" to attract the interest of the buyer. 

From the beginning of September until now, a large number of hotels have hit the market in the cities of Danang, Nha Trang, Vung Tau, Phu Quoc and Quy Nhon. However, hotels for sale in coastal cities are mostly 2 to 3 stars, even mini hotels. Sales prices for these properties are also lower than in Ho Chi Minh City and Hanoi, ranging from VND15 billion (US$646,516) to tens of billions VND for a hotel with less than 30 rooms.

Since Covid-19 broke out, the hotel business is the group that suffered the most and hit the hardest, Vo Quoc Phuong Trang, director of the Hotel Investment Division at JLL Vietnam, told VnExpress. Most hotels closed or took advantage of the closing period for repair and maintenance.

Due to the lack of a reliable forecast for the end of Covid-19, many hotels are still running at a loss and owners are considering selling to stop the burning of cash and pay off debt.

Still wait to see

 A hotel in the Hanoi's Old Quarter closed due to Covid-19. Photo: VnExpress
 

In the three-star or lower category, most hotels are run by family-owned companies with a long history in the hotel business that have little or no debt, so they still try to keep assets. However, it is time for some small-scale hotel owners to review operating models and finances before deciding to pursue the longer-term strategy, JLL's Trang added.

Recently, JLL has received many requests from domestic owners to sell properties or seek capital support for hotels. There are more and more hotels for sale to "cut losses."

Although many properties are hitting the market, the volume of transactions is negligible and tends to decrease compared to previous years, as sellers and buyers are still waiting for new developments of the disease.

Mauro Gasparotti, director of Savills Hotels Asia Pacific, said that at the end of August, the Vietnamese market had not registered any divestment in the form of liquidation. Since the beginning of the year, there have been no merger and acquisition transactions of resort or hotel real estate projects. Because this is an uncertain period that is difficult for asset valuation, it is hard to predict the level of risks posed by the complicated developments of Covid-19, he added.

Currently, hotel and resort projects in the 4-5-star categories are still able to keep their operations. However, 2-3-star hotels or mini hotels are facing more pressure than the high-end ones.

Gasparotti predicted that the tourism and resort market may fully recover between now and the next two years and there is a possibility of asset liquidation if the recovery is slower. For example, in the next six months, if the situation continues to be bleak, resort and hotel projects would be forced to carry out a strong restructuring of capital flows.

However, there will not be many well-located and quality hotel and resort projects sold on the market. This will be the time period when asset sales will be discussed most frequently, but not to the point of actually selling them, Gasparotti said. Hanoitimes

Nhat Minh

Hotel rates down steeply as COVID-19 keeps away tourists

Hotel rates down steeply as COVID-19 keeps away tourists

The hotel industry is facing arguably its greatest challenge as the impacts of COVID-19 keep away foreign visitors from the country.

Luxury hotels no longer lit up at night, fall into crisis

Luxury hotels no longer lit up at night, fall into crisis

Three- to five-star hotels in Hanoi have fallen into serious crisis as they cannot receive foreign travelers due to restrictions on international air transport amid the Covid-19 pandemic, according to the Hanoi Tourism Department.

 
 

Other News

.
FDI inflow into Vietnam still on upturn trend
FDI inflow into Vietnam still on upturn trend
BUSINESSicon  12/10/2021 

Despite impacts of the COVID-19 pandemic, the inflow of foreign direct investment (FDI) into Vietnam still rose 4.4 percent year on year in the first nine months of 2021 to 22.15 billion USD.

Two thirds of HCM City industries reopen
Two thirds of HCM City industries reopen
BUSINESSicon  12/10/2021 

The number of enterprises reopening at export processing zones and industrial parks in HCM City has reached 66.8 per cent, while at the Saigon Hi-Tech Park the rate is 74.3 per cent.

Government signs decision on special investment incentives
Government signs decision on special investment incentives
BUSINESSicon  12/10/2021 

Standing Deputy Prime Minister Pham Binh Minh has just signed Decision No 29/2021/QĐ-TTg of the Prime Minister on special investment incentives.

Sugar stocks expected to benefit from trade remedies
Sugar stocks expected to benefit from trade remedies
BUSINESSicon  12/10/2021 

Sugar producers expect the 2021-2022 crop, which is starting from July 1, will be more prosperous. 

Vietnamese-born duo make world’s first sneakers from residual coffee grounds
Vietnamese-born duo make world’s first sneakers from residual coffee grounds
BUSINESSicon  12/10/2021 

More and more startups nowadays are committed themselves to finding innovative solutions to environmental problems. 

Vietnam wood industry targets US$15 billion export revenue
Vietnam wood industry targets US$15 billion export revenue
BUSINESSicon  12/10/2021 

This year Vietnam targets earning $14.5 billion of export revenue from wood and forest products.

THACO completes purchase of RoK’s Emart hypermarket in Vietnam
THACO completes purchase of RoK’s Emart hypermarket in Vietnam
BUSINESSicon  12/10/2021 

THACO said it has completed the acquisition of hypermarket business in Vietnam of Emart Inc of the Republic of Korea

Vietnam's economic growth to recover from Q4: Economist
Vietnam's economic growth to recover from Q4: Economist
BUSINESSicon  11/10/2021 

The Vietnamese economy is likely to gradually recover from the fourth quarter of 2021 and escape the minus growth seen in the third quarter.

Vietnam to pilot Mobile Money service for two years
Vietnam to pilot Mobile Money service for two years
BUSINESSicon  11/10/2021 

Vietnam will pilot Mobile Money service across the country for two years before officially launching it, according to Deputy Governor of the State Bank Dao Minh Tu.

Rapid vaccination and targeted policies key to Vietnam’s endemic growth
Rapid vaccination and targeted policies key to Vietnam’s endemic growth
BUSINESSicon  11/10/2021 

As the world is transitioning from pandemic to endemic, Vietnam needs to ensure its vaccination progress and greater adeptness at targeting control measures and support policies to follow suit.

Wellness tourism a gold mine for Vietnam to exploit
Wellness tourism a gold mine for Vietnam to exploit
FEATUREicon  12/10/2021 

About 350,000 foreigners came to Vietnam in 2018 to obtain medical treatment, bringing $2 billion in turnover to the country, not to mention the money travelers spent on healthcare services during their trips.

VIETNAM BUSINESS NEWS OCTOBER 11
VIETNAM BUSINESS NEWS OCTOBER 11
BUSINESSicon  11/10/2021 

Con Dao airport to be upgraded to serve larger aircraft

Venture capital in Vietnam may surpass US$1 billion in 2021
Venture capital in Vietnam may surpass US$1 billion in 2021
BUSINESSicon  11/10/2021 

Venture capital in Vietnam will reach $600 million and may surpass $1 billion in 2021. The country is expected be an attractive destination for venture capital funds in the following years.

Vietnamese currency forecast to strengthen against US dollar in 2021
Vietnamese currency forecast to strengthen against US dollar in 2021
BUSINESSicon  11/10/2021 

Since July 2021, the Vietnamese dong has strengthened by 1.3 per cent against the US dollar and the unit has averaged VND23,930 per US dollar in the year-to-October.

Foreign businesses continue to see Vietnam as a good investment location
Foreign businesses continue to see Vietnam as a good investment location
BUSINESSicon  11/10/2021 

While a number of foreign companies have moved part of their production or orders to other countries, many said they still see Viet Nam as a good...

Will Mobile World open new TopZone chain abroad?
Will Mobile World open new TopZone chain abroad?
BUSINESSicon  11/10/2021 

The Gioi Di Dong (Mobile World) has revealed the opening of a new chain named TopZone, with many indications that it will be their second retail chain abroad.

Domestic petrol prices to reach new highs on global market rally
Domestic petrol prices to reach new highs on global market rally
BUSINESSicon  10/10/2021 

Retail petrol prices in Vietnam are likely to reach new highs when the Ministry of Finance and the Ministry of Industry and Trade announce their price adjustments on October 11.

Media, businesses together overcome impact of Covid-19 pandemic
Media, businesses together overcome impact of Covid-19 pandemic
BUSINESSicon  10/10/2021 

The online forum "The press accompanies businesses to restore production and business, overcome the impact of the pandemic" to mark Vietnam Entrepreneurs' Day on October 13.

Efforts made to protect interests of Vietnamese products in EU market
Efforts made to protect interests of Vietnamese products in EU market
BUSINESSicon  10/10/2021 

Vietnam has taken various measures in a bid to protect the interest of Vietnamese products and exporters in the EU markets, according to the Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade (MoIT).

Local property market expects strong rebound
Local property market expects strong rebound
BUSINESSicon  09/10/2021 

The country’s real estate market has seen positive signs for recovery following the economic reopening, experts said.

 
 
 
Leave your comment on an article

OR QUICK LOGIN